Thai conglomerates reap strong returns from long-term bets on Vietnam

VIETNAM, 26 AUGUST 2026 —

Thai Conglomerates Reap Rewards from Decades-Long Vietnam Investments

Thailand’s biggest business groups—spanning industries from petrochemicals to retail—are reporting earnings, driven by Vietnam’s rapid economic expansion and rising consumer demand. The latest financial results show that long-term bets made over decades are now paying off, with several Thai firms flagging Vietnam as a major contributor to their regional performance.

Industrial conglomerate SCG reported a 35% year-on-year jump in adjusted EBITDA to USD 1.34 billion in the first half of 2026, with net profit reaching USD 394 million. Vietnam was a key driver, generating VND 37.12 trillion (USD 1.42 billion) in revenue—a 126% surge from the same period in 2025. The growth was bolstered by improved business conditions and the restart of operations at the Long Son Petrochemicals Complex in late 2025.

SCG, which has operated in Vietnam for over 30 years, plans to expand further in manufacturing, packaging, building materials, and workforce development.

Beverage giant Thai Beverage (ThaiBev) maintained strong profitability despite softer demand in some markets, thanks to tighter cost controls and operational efficiency. Vietnam remains a critical market for ThaiBev through its majority stake in Sabeco and indirect exposure to Vinamilk via Fraser and Neave (F&N).

Vinamilk itself delivered strong results, with second-quarter 2026 revenue rising 12.5% to nearly VND 18.85 trillion (USD 720 million) and net profit up 28% to VND 3.17 trillion (USD 121 million). For the first half of 2026, Vinamilk’s revenue grew nearly 18%, with net profit climbing 37%.

Retail leader Central Retail continued to highlight Vietnam as one of its fastest-growing markets, with first-quarter 2026 revenue reaching USD 467 million—a 26% increase and about 23% of the group’s total revenue. After divesting its electronics arm Nguyen Kim, Central Retail is focusing on expanding its GO! supermarkets, Tops Market, and shopping mall network nationwide.

The company collaborates with over 5,000 Vietnamese suppliers, with locally sourced products making up roughly 95% of goods sold in its GO! chain.

Agribusiness firm Charoen Pokphand Foods (CP Foods) reported mixed results, with Vietnam revenue declining 17% in 2025 to THB 101.3 billion (USD 2.8 billion). However, Vietnam remains CP Foods’ largest overseas market, contributing 18% of global revenue—far ahead of China’s 8%. The company is planning to invest hundreds of millions of dollars in additional livestock and meat-processing projects in Vietnam.

Analysts attribute the success of Thailand’s investors to their long-term commitment, strategic acquisitions, and deep integration into Vietnam’s economy. SCG, for example, has built a vast industrial ecosystem through purchases such as Prime, Binh Minh Plastics, Duy Tan Plastics, and the Long Son Petrochemicals Complex, alongside multiple packaging and construction materials businesses.

Binh Minh Plastics, in which SCG owns about 55%, recently approved a dividend equivalent to nearly 149% of par value, distributing around VND 1.22 trillion (USD 46.5 million) for fiscal 2025—most of which flows back to SCG.

ThaiBev has similarly focused on market-leading companies, while Central Retail has strengthened its retail footprint through an omnichannel strategy. These investments underscore how patient capital and long-term market commitment are delivering substantial returns as Vietnam’s consumer market and industrial sector expand.

Outlook: With Vietnam’s economy projected to grow at around 6-7% annually, Thai conglomerates are expected to deepen their investments, particularly in high-growth sectors such as manufacturing, consumer goods, and retail. However, risks remain, including potential supply chain disruptions and regulatory changes. Analysts say the key to sustaining these returns will be continued adaptation to Vietnam’s evolving economic landscape.

Related: Vietnam